Humana cuts 2019 forecast for Medicare prescription drug plans

However, the company said it expected to add between 350,000 and 400,000 members to its Medicare Advantage health plans in 2019. It had previously expected additions of between 250,000 and 300,000 members.

“The announcement is a net positive with stronger Medicare Advantage growth more important than the continued large (prescription drug) declines,” Evercore ISI analyst Michael Newshel wrote in a note to clients.

Humana had said the Medicare Advantage plans, offered to people older than 65 or those with disabilities, were responsible for driving growth in the past few quarters.

For its standalone Medicare prescription drugs unit, Humana expects a drop of 750,000 to 800,000 members in 2019, compared with a drop of 500,000 estimated earlier.

Humana has decided to keep margins high and maintain membership levels across plans at a time when people search for cheaper health insurance amid sky-rocketing medical care costs.